E&O Insurance: What to Look for Before Buying


First, you must ensure that the E&O insurance is contract-specific and meets your needs. You need to make sure the benefits are realistic, both for your financial situation and the type of license you have. E&O policies that do not meet these two criteria should be rejected immediately. Don't waste your time and money on E&O insurance that doesn't cover you when you need it most.

Once you're confident in the basic functionality of the product, it's time to examine the other aspects that make E&O products unique. Let's take a look at each in turn, shall we?


Understandably, you don't want to overpay for E&O insurance. Paying too little is also a no-no. That's what we want to convey. If the price is too high, maintaining your insurance coverage will be a challenge. You might give it up, creating a gap in your coverage and you might not get coverage even if you buy a new policy in the future. Therefore, it is clearly not in your best interest to purchase expensive professional liability insurance.

However, what's the problem with paying too little? Because insurance companies and their business partners may have created a product that is not really insurance. Instead, they may be promoting a risk-sharing pool that is not legally obligated to pay claims. So if by the time you are sued and ready to file a claim, the funds in the pool run out, and you may be out of luck if you lose.

top insurance company

Whether you buy E&O insurance or any other type of insurance, your insurance company should be there for you when you need it. However, some companies may not be fully prepared for the possibility of future claims. Therefore, they may be financially vulnerable if future claims exceed expectations. As a result, if the gap between demand and assets is large enough, they can go bankrupt. This is bad news if you are counting on your E&O settlement or judgment to be paid by the insurance company.

fast application

Once you've determined that E&O insurance meets your needs, you can manage it, and the insurance company is financially healthy, it's time to see how easy it is to get E&O insurance. Traditionally, E&O insurance was purchased through a specific insurance broker five or ten years ago. As you know, this process can take weeks or months, during which time the insurance broker will not be protected from client lawsuits. Online entrepreneurs have reinvented the entire buying process, making it easy to find the right product, submit an application and print out a policy in minutes.

Ethics, Compliance and Continuing Education Courses

Finding your E&O insurance company can not only provide financial support when you are sued, but it can also help prevent conflicts. Ethical and compliant content is essential to avoid regulatory penalties, so make sure that the organization you choose publish such resources. Find free CE courses to meet the educational needs of states and corporate groups.